Spain

In 2011, the country’s cabinet approved a draft law to regulate all forms of remote gaming. The Spanish Parliament will consider the draft with a tax levied on gross profits, after a controversial turnover tax was dropped by the government. A new commission will be implemented to oversee the advertising practices of unauthorized operators, introduce a form to prevent the access from unlicensed Internet casinos, and implement severe fines for operators and citizens not adhering to the new gaming laws. The bill will go before Congress, and then passed to the Senate and the European Commission (EC). The new gaming regulations must be presented to the EC to determine their legal status within the European Union. The state monopoly, Loterías y Apuestas del Estado, is expected to be privatized to comply. The tax model approved by the Spanish Council of Ministers is not yet known.

Spain’s Minister for the Economy estimates a legalized online gambling industry could generate revenues of EUR 200 million per year.

In 2010, the Sectorial Gaming Commission, which consists of gaming authorities of the 17 Autonomous Regions of the country, the State Lotteries Monopoly, and the National Gaming Board met to discuss publishing new draft laws to regulate online gaming. The draft laws will not contain specifics on taxation. Some autonomous regions appear to be initiating the drafting of regulation locally. Although the Autonomous Regions have the authority to regulate online gambling within their region, it is unclear when online gaming is considered to be crossing regional boundaries.

Despite the blurriness of regional boundaries, Autonomous Regions are moving forward with their own regulation of online gaming. The Government of Catalonia resolved to pass its own online gaming bill after growing tired of waiting for the central government to implement regulations. The bill sets minimum requirements but regulates advertising and requires companies to notify authorities in advance of their ad campaigns. The law prohibits encouraging compulsive gambling, promoting games via gifts or free drinks, and advertising to minors. Creating the Gaming Commission of Catalonia, a consultative body representing all operators, is also included in the bill. The Region of Madrid issues licenses as soon as operators meet specified requirements and has already issued licenses to existing land-based casinos and bingo halls for offering online betting, casino games, and bingo.

In May 2011, the new Gambling Law was endorsed by the Spanish Congress to establish a regulatory environment through all remote and interactive channels. The new law will became effective when it was published in the State Official Bulletin (Boletín Oficial del Estado.) This is Spain’s first regulation of gambling since it was decriminalized in 1977. The law allows for the establishment and development of online gambling with the exception of games exclusive to the National Lottery (LAE) and Blind Charity Lottery (ONCE). Excluded from the bill are live in-play betting and bingo, as both were defined as having dangerously addictive effects. The taxation for online gaming is set at 25% of GGR/GPT. Gaming operators who have been doing business in Spain will have to pay the relevant taxes for the five-year period prior to this new law in order to obtain a gaming license.